Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified ACI Worldwide as such a stock due to the following factors:
- ACIW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.8 million.
- ACIW has traded 83,549 shares today.
- ACIW is trading at 2.60 times the normal volume for the stock at this time of day.
- ACIW is trading at a new high 5.04% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on ACIW:
ACI Worldwide, Inc. develops, markets, installs, and supports software products and services for facilitating electronic payments worldwide. ACIW has a PE ratio of 35. Currently there is 1 analyst that rates ACI Worldwide a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for ACI Worldwide has been 626,500 shares per day over the past 30 days. ACI Worldwide has a market cap of $2.6 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.86 and a short float of 4.1% with 4.67 days to cover. Shares are up 11.1% year-to-date as of the close of trading on Wednesday.
rates ACI Worldwide as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, compelling growth in net income, reasonable valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 11.5%. Since the same quarter one year prior, revenues slightly increased by 5.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 31.26% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ACIW should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- ACI WORLDWIDE INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ACI WORLDWIDE INC increased its bottom line by earning $0.59 versus $0.54 in the prior year. This year, the market expects an improvement in earnings ($0.71 versus $0.59).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 97.2% when compared to the same quarter one year prior, rising from -$5.78 million to -$0.16 million.
- You can view the full ACI Worldwide Ratings Report.